Unilever Divests Its Russian Operations
British consumer-goods giant Unilever is exiting the Russian market, having remained operational there even as many companies withdrew following the 2022 Ukraine conflict. Read Full Article at RT.com
TroibNews 
Unilever, the British consumer-goods giant, has finalized its departure from Russia, as announced in a statement on Thursday. The company faced significant backlash for staying in the country while many other corporations exited following the onset of the Ukraine conflict in 2022 and the subsequent Western sanctions.
Unilever has sold all its operations in Russia to Arnest Group, a local manufacturer specializing in perfume, cosmetics, and household products. The sale also encompasses Unilever’s business in Belarus.
“The completion of the sale ends Unilever Russia’s presence in the country,” remarked CEO Hein Schumacher.
The company did not reveal the details of the transaction. Under divestment regulations instituted by the Russian government last year, companies looking to exit must secure government approval for sales, sell their assets at a 50% discount, and pay an exit tax ranging from 10% to 15%.
However, a report from the Financial Times indicated that Unilever’s assets, valued at around €600 million, were sold for €520 million.
Unilever’s Russian operations included four factories and contributed approximately 1% to the group’s turnover and net profit in 2023, according to the Financial Times.
Arnest Group, owned by Russian industrialist Aleksey Sagal, has previously taken over local assets from U.S. can manufacturer Ball Corp, Dutch brewer Heineken, and Swedish cosmetics company Oriflame.
Unilever produces brands such as Fairy and Domestos cleaning liquids, Dove soap, and Ben & Jerry’s ice cream, along with around 400 other food and household chemical brands. The company ceased exports and imports with Russia in March 2022 and halted investments, advertising, and other projects there. Nevertheless, it continued producing and selling what it considered “vital food and hygiene products” in Russia, a choice that led the Ukrainian government to label it “an international sponsor of war” in 2023.
Previously, Unilever gave no signals that it intended to leave the Russian market. In July 2023, the company stated that it did not want to withdraw and risk having its operations nationalized or to sell its Russian division. However, media reports in September claimed that the UK-based giant had reversed its stance and opted to sell its Russian assets.
Reuters reported in March that the exit from Russia has cost foreign companies over $107 billion in writedowns and lost revenue since 2022.
Alejandro Jose Martinez contributed to this report for TROIB News
Unilever has sold all its operations in Russia to Arnest Group, a local manufacturer specializing in perfume, cosmetics, and household products. The sale also encompasses Unilever’s business in Belarus.
“The completion of the sale ends Unilever Russia’s presence in the country,” remarked CEO Hein Schumacher.
The company did not reveal the details of the transaction. Under divestment regulations instituted by the Russian government last year, companies looking to exit must secure government approval for sales, sell their assets at a 50% discount, and pay an exit tax ranging from 10% to 15%.
However, a report from the Financial Times indicated that Unilever’s assets, valued at around €600 million, were sold for €520 million.
Unilever’s Russian operations included four factories and contributed approximately 1% to the group’s turnover and net profit in 2023, according to the Financial Times.
Arnest Group, owned by Russian industrialist Aleksey Sagal, has previously taken over local assets from U.S. can manufacturer Ball Corp, Dutch brewer Heineken, and Swedish cosmetics company Oriflame.
Unilever produces brands such as Fairy and Domestos cleaning liquids, Dove soap, and Ben & Jerry’s ice cream, along with around 400 other food and household chemical brands. The company ceased exports and imports with Russia in March 2022 and halted investments, advertising, and other projects there. Nevertheless, it continued producing and selling what it considered “vital food and hygiene products” in Russia, a choice that led the Ukrainian government to label it “an international sponsor of war” in 2023.
Previously, Unilever gave no signals that it intended to leave the Russian market. In July 2023, the company stated that it did not want to withdraw and risk having its operations nationalized or to sell its Russian division. However, media reports in September claimed that the UK-based giant had reversed its stance and opted to sell its Russian assets.
Reuters reported in March that the exit from Russia has cost foreign companies over $107 billion in writedowns and lost revenue since 2022.
Alejandro Jose Martinez contributed to this report for TROIB News
